Nov 14, 2016
From the Financial Reporting View
The FASB’s recently proposed ASU, Determining the Customer of the Operation Services, would clarify that the public-sector grantor (government) is the customer in a service concession arrangement under Topic 853. This is an important consideration for the operating entity to whom the concession has been granted in determining how it recognizes revenue under the arrangement.
For an entity that has not yet adopted the new revenue standard (Topic 606), the effective date and transition requirements for the proposal would align with that standard.
The comment period ends January 6, 2017.